Robotics industry to take off in Dongguan

The robotics industry looks set to take off in the Pearl River Delta boomtown of Dongguan over the next few years.

The optimism has been linked to a government initiative encouraging automated manufacturing. The initiative is expected to accelerate the development of the smart equipment manufacturing industry and ease the pressure of the current labor shortage in Dongguan.

As of October this year, the city had pooled 5.54 billion yuan ($868.52 million) to contribute to 678 projects, according to official statistics. The projects will gradually phase out the traditional workforce with robots.

About 30 percent of the money (1.56 billion yuan) has been invested into local brands in Dongguan. An installation target of 22,576 machines (robots) has been set for the area.

The industrial upgrade is a "once in a blue moon opportunity" to benefit financially, according to Ye Baohua, director-general of Dongguan economy and information technology bureau. However, Ye conceded that the city still has a very long way to develop the smart equipment manufacturing industry.

"The intensifying local market and local government encouragement for local enterprises to use local substitutes will first and foremost benefit the city's smart equipment manufacturing industry," said Ye.

The city's government will offer a subsidy of 15 percent of the capital for each "robot replacing" project it takes on. A maximum financial support of 3 million yuan is available if the project chooses local brands in Dongguan, according to the official.

"The sector is expected to witness an explosive growth in the coming three to five years as the drive of industrial upgrade continues and industrial chain matures," he said.

Local enterprises showing interest in the "robot replacing" programs are largely those related to the electronics, information technology, electrical machinery and equipment manufacturing, printing and packaging industries.

The provincial government of Guangdong recently announced that it will invest 943 billion yuan to install robotics systems to phase out human laborers in the next few years. Robots are due to be installed in 1,950 enterprises in automobile, home appliance, textile, electronics and construction materials manufacturing industries by 2017.

Dongguan's success in implementing industrial upgrades and replacing the traditional workforce with robots attracted worldwide media outlets on Wednesday. Media professionals visited the city as part of a five-day foreign media FAM tour. The tour was co-organized by the information office and foreign affairs office of the Guangdong provincial government.

Approximately 60 journalists from some 30 of the world's key media organizations are attending the media tour.